Economics
Bank of England Hints at Slow Rate Hikes Even as Growth Improves
- Policy makers vote unanimously to keep rates on hold for now
- GDP growth forecast for 2019 increased to 1.5% from 1.2%
This article is for subscribers only.
The Bank of England signaled that it’s in no rush to raise interest rates despite stronger economic growth, as policy makers stayed united on the need to keep borrowing costs on hold for now.
In an upbeat set of forecasts, Governor Mark Carney and his colleagues upgraded their expectations for growth, saying unemployment will fall further and the economy will generate more excess demand than previously predicted. Yet the Monetary Policy Committee cut its inflation outlook. Investors predict only one more quarter-point hike between now and 2021.